𝐍𝐚𝐬𝐝𝐚𝐪 𝐚𝐝𝐯𝐚𝐧𝐜𝐞𝐬, 𝐃𝐨𝐰 𝐉𝐨𝐧𝐞𝐬 𝐟𝐚𝐥𝐥𝐬 𝐛𝐚𝐜𝐤, 𝐚𝐬 𝐛𝐨𝐧𝐝 𝐲𝐢𝐞𝐥𝐝𝐬 𝐫𝐞𝐭𝐫𝐞𝐚𝐭 The relationship between stocks and bond yields couldn't be stronger, with the two joined at the hip for the last several weeks. Overnight, the yield on the 10-year Treasury note slipped 5 bps to 1.68%, prompting the Nasdaq to advance 0.6%, while the Dow and S&P 500 inched down 0.3% and 0.1%, respectively. Fed Chair Jerome Powell is also scheduled to speak at 9 a.m. this morning, discussing central-bank innovation at an event hosted by the Bank for International Settlements. Note: Weighing on some value names this morning, like the banks, are recent moves by the Fed to restore some of the capital requirements that were suspended in the early months of the coronavirus crisis (the decision also weighed on bank shares on Friday). During the pandemic, the Fed allowed banks to exclude Treasury securities they hold, as well as central bank deposits, from their supplementary leverage ratios (SLR). That exclusion now expires on March 31, 2021, lowering the SLR for all banks that are required to report it. Stimulus checks are also finding their way into various sectors of the market. On Friday, BofA Global Research said that U.S. equity inflows hit a weekly record of $56.76B in the week ending March 17, up sharply from $16.83B a week earlier. A new poll from Mizuho Securities also found that two out of five stimulus check recipients plan to invest at least some part of the proceeds into Bitcoin and stocks, while the Treasury distributed $242B in stimulus checks through March 17, or around 60% of the expected total. Thought bubble: For now, it appears that growth stocks and value names cannot go up at once. "Either tech stocks get too low... or long-term interest rates get too high. Until that happens, the rotation will just continue to play out," said Mad Money's Jim Cramer. "We aren't there yet, but I'm confident that we’ll get there eventually because that’s what always ends these vicious kinds of rotations." --------------------------------- Cre: Seekingalpha